I am also unable to progress past the first save point. I originally could not get past the movie, but after enabling Widescreen I was able to get to the first save point.
It now hangs on the first save point. I used hdl_dump 0.8.3 to upload the image (HDA reports the correct image size), but will give HDL Dump GUI v14 a go tonight and will report back tomorrow morning.
Oh, thanks for the widescreen mode advice....At least it's given me a taster of the game